The Soy Boom (Optional)
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Tyler and Alex
Having worked in both South America and North Asia I was under the impression that the main driver for increased soy production was as an oilseed, particularly in China. The residue from crushing was more usually used to feed livestock (though I understand in the USA it's common as a stock feed). Key drivers of demand were the order books of Chinese oil crushing plants, rather than for use to make tofu. I realise that these courses require simplification but I don't think there's a direct link between increased demand for animal protein and soy used for stock feed. Does anyone have specialist knowledge on this?
MR is correct. To provide some insight, realize soybean is about 38% protein, 17% oil, and 26% carbohydrate. Contrast that with corn, which is 8%, 4%, and 61%. The effectiveness of the corn-soy rotation is not just how compatible they are agriculturally, but also from a market demand standpoint.
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